The Zhitong Finance App learned that Dongwu Securities released a research report saying that the general trend of domestic injection molding machines going overseas is mainly due to: 1) the basic formation of the domestic injection molding machine pattern, with leading foreign investors only occupying part of the high-end market, and leading domestic companies going overseas to seek more opportunities; 2) the gross margin of domestic injection molding machine companies is higher than the domestic business, and leading companies pursue high profits; 3) the overseas injection molding machine market is in strong demand due to the transfer of the industrial chain. At present, domestic injection molding machines are already deployed in places such as India and Southeast Asia. In the future, as the industrial chain shifts and domestic injection molding machines gradually expand into markets with low market share such as Europe and South America, the overseas share is expected to increase at an accelerated pace. In the long run, the overseas share will increase from the current 20-30% to 50%.
Injection molding machine: general equipment for molding plastic products
An injection molding machine is a machine used to manufacture plastic products. Its operating principle is to use a hydraulic cylinder or servo motor screw to drive the plunger and screw, inject the heated and sheared plastic into the closed mold cavity in a molten state, and finally cool and solidify the product into the required shape within the mold. In terms of market space, according to statistics from Huajing Industry Research Institute, the domestic injection molding machine market space exceeded 26 billion yuan in 2022, and the CAGR in 2017-2022 was 3.79%. The global scale of injection molding machines was 99.4 billion in 2020, and the global scale is expected to reach 141.4 billion yuan in 2028, with a CAGR of 4.5%. The injection molding machine industry is widely used downstream, including general-purpose plastics, automobiles, home appliances, packaged beverages, etc.
Industry competition pattern: Europe and Japan occupy high-end fields, and the domestic “one super, many strong” pattern is stable
The global injection molding machine industry can be divided into three echelons. European and Japanese companies represented by Engel and Fanuc are the first tier and monopolize the high-end market. Domestic injection molding machine leaders represented by Haitian International and Yizumi are in the second tier. The mid-tier card market is developing to the high-end, and many domestic small and medium-sized enterprises occupy the middle and low end markets. Looking at domestic and foreign comparisons, there is still a gap between domestic injection molding machines and foreign brands. The main core components still rely on imports. Specifically, Japanese brands are superior in electric injection molding machines, while European brands have better performance, and at the same time are fully ahead of domestic brands in terms of overall injection molding machine solutions and turnkey engineering.
Looking at domestic competition, Dongwu Securities believes that with economies of scale and product strength leading the way, the strong are always strong. On the one hand, product strength is the first factor that determines the competitive pattern of injection molding machines. Leading companies such as Haitian International are in a leading position in terms of product variety and iteration speed; on the other hand, the high-end downstream pattern of injection molding machines is concentrated, and competition in the middle and low end is fierce. Leading companies enjoy dividends and are also in a leading position in terms of profitability.
Recommended targets: Yizumi (300415.SZ), Haitian International (01882), Terry Machine (603289.SH).
Risk warning: There is a risk that the boom in the injection molding machine industry falls short of expectations, the overseas expansion of injection molding machines falls short of expectations, and the price of raw materials will rise.